HR Outsourcing is the new multifunctional and mobile secretary of the decade. The
disposal of administrative workload upon human resource outsourcing companies, has allowed
businesses to prioritize their agenda and thrive in several ways. Corporations that find in-house
HR services costly and time-consuming often opt for HR outsourcing as a rather cost-effective
alternative. Today’s HR firms provide a variety of services, often associated with certain
specialized segments of the industry. These services generally fall into four well-divided
categories:
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Professional Employer Organization (PEO): this type of HR Outsourcing solution
empowers the organization to “co-employ” the given business, as far as HR services are concerned.
PEOs then assume full legal responsibility for the company’s employees, coordinating the
recruitment process and deciding on salary-related issues.
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Business Process Outsourcing (BPO): an organization involved practically in all
aspects of outsourcing, providing technological backup for existing systems. In the human resource
outsourcing area, PBOs are busy implementing the latest computerized solutions.
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Application Service Providers (ASP): ASPs develop and rent HR software to
HR outsourcing companies. Human resource companies’ outsourcing professionals
often customize the software to fit specific needs, such as payroll and benefits management.
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E-service: a collective name encompassing all HR outsourcing companies that provide
web-based solutions.
Managers are generally pleased to outsource certain key HR functions to a third
party. The top-ranking service on this list is the organization of a company’s regulatory
compliance. The legal administrative procedure associated with federal and state labor laws, tax
filings and corporate regulations provide the most amount of seemingly complicated paperwork and
require the professional involvement of competent
HR outsourcing consultants. Staff management related issues march in
its footsteps, proudly occupying the second base for most often outsourced HR services. These
include the handling of payrolls, hiring and firing and benefit plans among others. Retirement
planning and pension administration also form a significant bite of the industry’s cake of
services.
The question may rightfully arise: if the power of human resource outsourcing
services is so magnetic, who can actually afford to turn his /her back on its beneficial
operations? Well, there are always the scrupulous self-made businessmen, who only believe in
harvesting the crops of their own painstaking efforts. On the other hand certain corporations
simply prefer to operate the HR department in-house, often in order to maintain authority or for
the obvious advantages derived from proximity.
The
HR Outsourcing Buyers’ Guide provides information on how to choose an HR
outsourcing company most suitable for your personalized needs. Furthermore, the Buyers’ Guide
provides HR outsourcing services terminology, a checklist offering useful guidelines, and a
selection of interesting articles related to the topic of HR outsourcing.
